Who's Going to Administer the New GI Bill?

Will one of the last gasps of an administration known for outsourcing whatever it can of government be to successfully or unsuccessfully outsource the otherwise promising new GI Bill?

In a phone interview, Terry W. Hartle, senior vice president for government and public affairs at the American Council on Education, said there are legitimate concerns about the new benefits system being ready by August, given the extreme complexity of the VA’s task. And he said that the agency’s choice of contractor — and that contractor’s ability to deliver — will be a critical factor in whether the VA completes the task and does so on time.

“It’s fundamentally a new program. The VA has not provided payments directly to colleges and universities since World War II,” said Hartle. He added that the switch to making payments directly to colleges is complicated by the fact that a substantial number of vocationally oriented institutions that participate in the GI Bill don’t participate in the federal financial aid program — so it’s not just a matter of adapting current federal systems.

In addition to paying colleges, the VA will continue to make payments directly to veterans for their housing and book stipends. Different payment levels will be calculated for students attending different institutions (the law covers up to the cost of in-state tuition at the most expensive public college in a veteran’s state). And a Yellow Ribbon program for students attending private colleges adds a whole other dimension.

“Colleges and universities are acutely aware that this is a very big, complex program and that the Department of Veterans Affairs is basically starting from scratch in putting it in place,” said Hartle. “I think the VA is doing as much as they can.”

At the same time, he said, “If you weren’t worried about their ability [to put it in place by next August], you wouldn’t be paying attention.”